PALM BEACH GARDENS, Fla. — A big change is allowing homeowners more flexibility when it comes to paying their federal flood insurance bills.
The switch involves allowing federal flood insurance premiums to be paid in installments, ending a more than 50-year practice of making homeowners pay their bills all at once.
"Something has to be done because people can't afford it when you have Florida paying five to six times the national average for homeowners insurance," said Greg Buck of National Risk Experts in Palm Beach Gardens.
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Ever since the National Flood Insurance Act became federal law in 1968, the premium had to be paid in full upfront.
Costs for the policies can vary depending on the flooding risk of a property.
"The average premium is going to be anywhere from say $500 to $600 to $2,000," Buck said.
Referring to the Citizens Insurance flood coverage requirement, he had this to say.
"It will matter to those people who are stuck in Citizens with an older home where Citizens is requiring [coverage] because after this year it's $500,000 and up that require to have the flood insurance with Citizens," Buck said.
This new installment plan is scheduled to begin on Dec. 31.